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The Lamar Company manufactures wiring tools. The company is currently producing well below its full capacity. The Boston Company has approached Lamar with an offer

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The Lamar Company manufactures wiring tools. The company is currently producing well below its full capacity. The Boston Company has approached Lamar with an offer to buy 15,000 tools at $1.91 each. Lamar sells its tools wholesale for $2.01 each: the average cost per unit is $1.99, of which $0.43 is fixed costs. Lamar were to accept Boston's offer, what would be the increase in Lamar's operating profits? Multiple Choice $5,250 $6,750 $1,500 $1,200

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